HSBC analysts say recent Q3 GDP data suggest AI-driven investment may be starting to narrow a prior K-shaped divergence in South Korea and Taiwan. Taiwan’s Q3 showed faster domestic demand, stronger capital expenditure and resilient consumption. South Korea displays a similar pattern, with AI-related growth appearing to spread to other domestic sectors and supporting consumption.

2026-11-04

HSBC analysts say recent Q3 GDP data suggest AI-driven investment may be starting to narrow a prior K-shaped divergence in South Korea and Taiwan. Taiwan’s Q3 showed faster domestic demand, stronger capital expenditure and resilient consumption. South Korea displays a similar pattern, with AI-related growth appearing to spread to other domestic sectors and supporting consumption.